Proponents of Obor in Malaysia and China are advocating for a deeper collaboration on technology and expertise transfer. — 123rf
LARGE maritime facilities, winding roads spanning continents, and expansive trade via the “New Silk Road” – these are the usual images associated with China’s global infrastructure development blueprint, launched in 2013. Known as the One Belt, One Road (Obor) project or the Belt and Road Initiative, it is an ambitious plan where China aims to invest in over 150 countries and create new trade routes by land and sea, with completion targeted by 2049.
Malaysia’s involvement in Obor is not new. In 2016, the country signed 14 agreements worth about RM144bil.
Notable Obor-linked projects include the East Coast Rail Link (ECRL) and the Melaka Gateway, where deep-sea ports are under construction.
However, some proponents of Obor in Malaysia and China are advocating for a deeper collaboration – one that emphasises technology and expertise transfer. They propose focusing on life sciences, a field gaining global traction, particularly in medical technology and pharmaceuticals.
According to Dr KP Chiew, secretary-general of the Obor Economic Friendship Associa-tion, life sciences involve more than just discovery.
“Life sciences address real-world issues, such as disease prevention, sustainable healthcare, and quality of life. This industry includes medical devices and diagnostic test kits,” he said.
Chiew recently attended the Obor Malaysia-China Forum on Life Science Research and Development 2024 at Taylor’s University, organised by the Obor Economic Friendship Association and Shanghai Yuanzan Life Science.
The event highlighted collaborations between Yuanzan Life Science and universities in healthcare innovation, biotechnology and research.
Chiew emphasises that such efforts represent the “softer side” of Obor, which people often overlook.
“While Obor is known for infrastructure like roads, bridges and energy projects, this collaboration in technology and talent transfer is equally valuable.”
He added that Malaysia has the core competency to partner with Chinese companies in life sciences.
“We can upgrade our industry through shared expertise, especially in technology and R&D.”
From an investment perspective, Taylor’s University vice-chancellor (external engagement Prof Dr Ong Kian Ming notes that Malaysia holds potential as a manufacturing hub for life sciences, saying that Malaysia offers more than just market access.
“If you find Malaysia is a suitable place for not just your market, but your potential manufacturing location, potential deployment – meaning machine maintenance and also enhancing your machines – this can lead to a greater investment in places like Malaysia and other parts of South-East Asia.”
Chiew echoes similar optimism, suggesting that Malaysia could become a regional hub for Chinese life sciences companies expanding globally.
“Malaysia can help Chinese companies globalise while also acting as their hub. With cultural and linguistic advantages, Malaysia is well-positioned to support their expansion.
“Of course, I think we can look into the angle of a innovation and technology transfers. We can tap into China’s expertise. We can work together on not just on medical devices but also on replacement parts, components and consumables.
“Setting up large factories here and investing more in manufacturing could benefit both sides.”
However, Ong cautions against rushing into large-scale projects without first conducting pilot initiatives to test feasibility and compatibility.
“Pilot projects between stakeholders would help manage risks and allow stakeholders to adjust to each other’s working styles.”
He cites the example of Pharmaniaga, which fell into financial distress in 2023 after investing heavily in manufacturing China-made Covid-19 vaccines.
The company later entered PN17 status after failing to sell RM552.3mil worth of vaccines. To avoid similar risks, Ong says pilot projects can offer a safer path forward.
“Not sure how many you remember but this was not too long ago. Pharmaniaga in Malaysia undertook heavy investment to manufacture Covid-19 vaccines in Malaysia. This was a China-made vaccine.
“It was big risk on their part. Later, Pharmaniaga went into PN17 status. So to avoid those kinds of big risks, on both sides, with the different stakeholders involved, these kind of pilot projects can be undertaken.”
Ong further suggests that Malaysia could play a unique role in facilitating regulatory approvals for Chinese pharmaceutical products.
“One specific area that I aware of through different engagements I had is, lets say if there are certain vaccines or pharmaceutical drugs that have been developed in China for example, it is not so easy to get immediate FDA approval.
“Malaysia, with its (English-language) regulatory process, could offer a pathway for concurrent approvals.
“This could provide Chinese companies a head start in the United States and European markets.
The private sector should engage with regulators to explore how Malaysia can facilitate smoother market entry for Chinese pharmaceutical products, Ong says.
